Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (June 2020)
34 slides from Tlou Energy's investor presentation, Jun 15, 2020
Slide 1: Emerging Power Producer
Tlou Energy Limited Emerging Power Producer Cleaner energy vision for Botswana and beyond
Slide 2: Disclaimer
Disclaimer The presentation materials (the “Presentation Materials”) are confidential and being supplied to you solely for your own information and may not be reproduced, further distributed, or the contents otherwise divulged, directly or indirectly, to any other person or published, in whole or in
Slide 3: Disclaimer continued
Disclaimer continued No recipient of these Presentation Materials should deal in or attempt to deal in or otherwise engage in any behaviour in relation to financial instruments (as defined in the Market Abuse Regulation ("MAR")), which would or might amount to "market abuse" for the purposes of MAR,
Slide 4: About Us
Cleaner Energy in Sub-Saharan Africa ➢ Tlou has an advanced power project in Botswana ➢ The Company is aiming to produce power for sale into the Botswana power grid with connection to the SAPP ➢ Power generation from gas and solar are proposed ➢ There is significant demand for cleaner electricity in
Slide 5: Corporate Information
Corporate Information Shareholding ➢ Listing: o Australia – ASX: TOU 42% o UK – AIM: TLOU 40% o Botswana – BSE: TLOU ➢ Issued share Capital: 450,180,185 ➢ Top 20 holders: ~53% ➢ Largest Shareholders: o Botswana Public Officers Pension Fund ~10.5% o Anthony Gilby Group ~4.8% ➢ AIM Nomad: Grant Thornt
Slide 6: Board
Board Martin Gabaake G. Colm McIver Gabaake Cloonan Non-Executive Chair Executive Director Finance Director & CFO 20 years experience in finance Geologist, former Botswana Finance professional; and mining services Permanent Secretary at 20 years experience including Ministry of Minerals Energy & pow
Slide 7: Key Management
Key Management Solomon Danny Remigiyo Rowland Horne Mavata General Manager Chief Operations Officer Chief Geologist Lawyer, Co. Secretary, over 18 30 years in the drilling industry Geologist, 20+ years African years experience including 18 years in the Oil & experience in multidisciplinary Gas Secto
Slide 8: Power issues in Southern Africa
Power issues in Southern Africa Over-reliance on A Changing Carbon Intensive Gas to support Environment Power Power Deficits Solar Grid Stability Momentum towards Existing electricity is Regional power supply is Gas can provide baseload Solar-only projects can cleaner energy to prevent produced larg
Slide 9: Market Opportunity
Market Opportunity Botswana’s reliance on imported power comes with an enormous cost. Without sufficient internally produced power, neighbouring countries control Botswana’s energy security • Botswana is currently not able to meet demand The considerable cost of imported power • Operating Capacity 4
Slide 10: Location
Location Tlou’s projects are located in Botswana. Botswana is located in southern Africa with a very supportive and progressive government. Good infrastructure exists, including an electricity grid which provides access to the wider market via the Southern African Power Pool (SAPP). Tlou’s cleaner e
Slide 11: Project Areas
Project Areas Tlou has three project areas in Botswana, each at different stages of development. The Company aims to expand its footprint where possible including potential expansion into other jurisdictions as part of the long-term strategy. Gas and Solar Project Lesedi Location of Tlou’s initial G
Slide 12: Generation Options
Generation Options Tlou plans to produce power from two sources (i) Coal Bed Methane (CBM) gas (ii) Solar panels These two energy sources can produce electricity either separately or combined. When combined into a hybrid solution, cleaner baseload energy is possible. Gas Solar • Gas produced from sh
Slide 13: Lesedi Gas-to-Power Project
Lesedi Gas-to-Power Project Electricity generation from Tlou’s Lesedi CBM gas Tlou Energy Limited 13
Slide 14: Lesedi Power Project – Tlou's most advanced project
Lesedi Power Project – Tlou’s most advanced project The Lesedi Gas-to-Power project is proposed to generate electricity from gas for sale into the local electricity grid. The initial phase of development is planned to produce up to 10MW with further expansion thereafter. Completed Gas Produced from
Slide 15: Gas Production and Generation
Gas Production and Generation Tlou’s gas wells, referred to as ‘Dual lateral Pods’ consist of two lateral Gas produced from Tlou’s Dual Lateral Pods are planned to feed into wells that intersect with a vertical well to produce gas a Central Processing Facility to be converted into electricity and so
Slide 16: Substation and Production well
Substation and Production well Serowe Substation – where Tlou plans to connect its transmission line to the regional electricity grid Gas Production well in the Lesedi project area Tlou Energy Limited 16
Slide 17: Generation and Expansion plans
Generation and Expansion plans Tlou is aiming to be a major power producer. There is demand for power in the region and a desire to transition from coal and diesel fired generation to cleaner sources of energy. Step 1 – Grid Connection Step 2 – Generation Step 3 – Expansion • Grid connection is • On
Slide 18: Independent Gas Reserves Certification
Independent Gas Reserves Certification(1) 0.35 BCF (1P) 40.8 BCF (2P) 426.6 BCF (3P) (1) (2) Gas Reserves Gas Contingent Resources 1P 2P 3P 1C 2C 3C Gas Prospective Location Project Tlou Interest (BCF) (BCF) (BCF) (BCF) (BCF) (BCF) Resource (BCF)3 Lesedi CBM Karoo Basin (Lower Morupule coal) 100% 0.
Slide 19: Hybrid Gas & Solar Power
Hybrid Gas & Solar Power Baseload power using Solar combined with gas- fired generation. Tlou Energy Limited 19
Slide 20: Gas and Solar - Advantages
Gas and Solar - Advantages A number of advantages are associated with Tlou’s gas and solar hybrid solution Offers potential 24-hour baseload and peaking power Combining gas and solar could create a significant expansion opportunity Solar can compliment gas generation as the project grows Tlou’s obje
Slide 21: Tlou's Hybrid Gas and Solar Power Solution
Tlou’s Hybrid Gas and Solar Power Solution Tlou’s solution combining gas and solar can provide baseload and peaking power when the sun is not shining Tlou Energy Limited 21
Slide 22: Project Details
Project Details Pathway to Ready to Go ‘Battery’ Back-up Optimum Location Scalable Solution Revenue • Tlou’s initial gas- • Cleaner baseload • First electricity • Supportive • A scalable to-power and peaking sales ~12 government project could generation power to be months from • Desert climate negat
Slide 23: Project Participants & Regional Issues
Project Participants & Regional Issues Tlou and Project Advisor Regional Issues • Tlou Energy has been a cleaner energy pioneer • Existing generation in Botswana requires government support • Invested over $50million to date to develop gas as a through subsidies cleaner base load and peaking power g
Slide 24: Solar Technical Overview
Solar Technical Overview In conjunction with our advisors, various solar panels are being considered for use in the project Trina Solar Panels Specifications (Under Consideration) • Duomax half-cell dual glass 72 layout module • Monocrystalline • 380-410W power output range • 20.2% maximum efficienc
Slide 25: Environmental, Social and Governance
Environmental, Social and Governance Tlou Energy supports various groups to enhance the lives of the local population and regional communities Tlou Energy Limited 25
Slide 26: Environmental, Social and Governance
Environmental, Social and Governance Projects supported by Tlou Energy include: Moralane Y-Care ❖ Village Community Development Initiative ❖ Charitable Trust • Consultation with local village and other stakeholders to • Non-profit organization raising funds for less privileged identify: communities
Slide 27: Environmental, Social and Governance continued
Environmental, Social and Governance continued Broadcasters Organisation Sandvelt Farmers ❖ Youth organisation, to promote academic excellence ❖ Western Sandvelt Farmers Association in primary schools • Local group aiming to establish sustainable business in the • 300 primary schools working with th
Slide 28: Huge Social and Economic Benefits
Huge Social and Economic Benefits Powering Botswana’s communities Other potential benefits of Tlou’s project include: • Allowing farms and communities to become more productive using reliable and cleaner power. Very supportive local stakeholders • Facilitating clean cooking by reducing the need to b
Slide 29: Environmental Impact Statement (EIS)
• As part of the EIS process, extensive engagement with stakeholders was undertaken including: • Local population • Key Government Departments • Land Boards • Farmers • All stakeholders are consulted so concerns are addressed and ideally that they can all benefit from Tlou’s project • The project wi
Slide 30: Environmental Impact Statement (EIS) continued
Environmental Impact Statement (EIS) continued ➢ Upstream EIS ➢ Downstream EIS ➢ Carbon Neutral • Upstream operations involves the • Downstream operations include • Tlou’s aims to reduce the impact exploration and development of power generation assets, solar the project has on the environment Tlou’
Slide 31: Exploration Projects
Exploration Projects Along with part of the Lesedi area, Tlou has two additional project areas in the exploration and evaluation phase Tlou Energy Limited 31
Slide 32: Exploration Project Areas
Exploration Project Areas ➢ Lesedi Project ➢ Mamba Project ➢ Boomslang Project • The Lesedi Project consists of four • The Mamba Project consists of five • The Boomslang Project area Prospecting Licences (or PL’s) plus a PL’s covering an area of consists of one PL with an area of Mining Licence with
Slide 33: Geological database
Geological database Tlou has acquired a very large geological database over several years The Company has drilled numerous wells and acquired seismic and aeromagnetic data to assist with sub-surface evaluation Geological cross-section showing the Lower Morupule coal-seam target across the Lesedi pro
Slide 34: Cleaner Energy
Tlou’s cleaner energy solution ✓ Tlou Energy is planning energy solutions for Botswana and southern Africa including: ➢ Gas ➢ Solar ➢ Hybrid gas “battery” and solar ✓ Tlou’s hybrid plan is a unique cleaner energy project for Botswana ✓ Initial development aimed to reach up to 25 MW Cleaner Energy ✓